Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazine70% of free cash flow: Centamin’s golden reward
Egypt-based gold miner Centamin (CEY) has surprised investors with plans to pay more than twice the amount of money it normally earmarks for dividends.
The miner has a policy to pay out between 15% and 30% of free cash flow as dividends each year to shareholders. Last week it put a smile on investors’ faces by saying it would pay 70% of free cash flow generated in 2016, equal to 15.5c per share. Analysts had only forecast 7c per share for the total dividend.
Sector peer Randgold Resources (RRS) on 6 February announced a 52% hike in its dividend. Investment bank Investec says this marks the start of ‘meaningful increases in shareholder returns’.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
